Can the e-yuan still be stopped?

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It doesn’t seem to be about meaning or wanting, but about having to. For the Chinese population, who are already used to highly digital payment transactions through private providers such as Alipay or WeChat Pay, it is difficult to understand the benefits that the new digital central bank money (Central Bank Digital Currency, or CBDC for short) is supposed to have. The Chinese state also seems to have noticed this, so that it keeps promoting its version – sometimes voluntarily, sometimes by force: the E-Yuan.

E-Yuan as digital helicopter money

China constantly organizes state lotteries in which the population is given E-Yuan. During the Chinese Spring Festival alone from January 22nd to February 7th, 2023, report the “Global Times” has counted over 200 government activities to promote the e-yuan. In addition to lotteries, there are often also discount measures. For example, if you use local transport and pay with CBDC, you can get a discount depending on the region.

However, not all measures are voluntary. In Changshu, a city with a population of 1.5 million southwest of Shanghai, from May 2023 government employees will no longer have their salaries transferred to the regular bank account, but to their state wallet. A radical step. Market economy structures, i.e. private financial service providers, are partially overridden by the state – greetings from the planned economy.